XML 75 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Property and Equipment
 12 Months Ended
Jun. 30, 2014
Property, Plant and Equipment [Abstract]  
Property and Equipment
Note 4—Property and Equipment
As of June 30, 2014 and June 30, 2013, our oil and natural gas properties and other property and equipment consisted of the following:
 
June 30,
2014
 
June 30,
2013
Oil and natural gas properties
 
 
 
Property costs subject to amortization
$
47,166,282

 
$
42,772,184

Less: Accumulated depreciation, depletion, and amortization
(9,344,212
)
 
(8,095,856
)
Unproved properties not subject to amortization
—

 
4,112,704

Oil and natural gas properties, net
37,822,070

 
38,789,032

Other property and equipment
 
 
 
Furniture, fixtures and office equipment, at cost
343,178

 
322,514

Artificial lift technology equipment, at cost
377,943

 
—

Less: Accumulated depreciation
(296,294
)
 
(270,297
)
Other property and equipment, net
$
424,827

 
$
52,217



As of June 30, 2014, all oil and gas property costs incurred by the Company were being amortized. At June 30, 2013, $4.1 million of our unproved properties were not subject to amortization and consisted of unevaluated acreage in the Mississippi Lime project in Oklahoma. Our evaluation of impairment of unproved properties occurs, at a minimum, on a quarterly basis. During the year ended June 30, 2014, we transferred $4.5 million of Mississippi Lime property cost to the full cost pool as initial quantities of hydrocarbon production were indicative of impairment.
In early November 2012, the Company sold its Wood well in the Giddings Field to EnerVest LLC and received net proceeds of $250,000 and the buyer's assumption of all abandonment liabilities.
On December 24, 2012, the Company closed the sale of a portion of its producing and non-producing properties and assets in Brazos, Burleson, Fayette, Lee and Grimes Counties, Texas to ASM Oil and Gas Company, Inc. ("ASM") for an adjusted purchase price of $2,804,976 and the buyer's assumption of all abandonment liabilities.
On May 1, 2013, the Company informed Orion Exploration Partners, LLC that it had elected to forego payment of the $1,209,197 remaining balance of its original purchase cost of leasehold in the Mississippi Lime formation in Kay County in Oklahoma. Accordingly, our joint venture interest in initial undrilled leasehold was reduced from 45% to 33.9% under the terms of the Agreement.
On June 14, 2013, the Company closed a second sale to ASM for producing and non-producing properties and assets in Brazos, Burleson, and Fayette Counties, Texas and received net proceeds of $425,000 and the buyer's assumption of all abandonment liabilities.
On December 1, 2013, we sold our producing assets and undeveloped reserves in the Lopez Field in South Texas in return for proceeds of $402,500 and the buyer's assumption of all abandonment liabilities.
The net proceeds from these sales, including the reduction of asset retirement obligations, were recognized as a reduction of the cost of oil and gas properties.